OECD: Recession a possibility without action on cliff, Europe

“The US ‘fiscal cliff’, if it materializes, could tip an already weak economy into recession, while failure to solve the euro area crisis could lead to a major financial shock and global downturn,” said Angel Gurría, the OECD’s secretary-general.

ADVERTISEMENT

“Governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs, in the United States, in Europe, and elsewhere.”

The OECD also projected that growth would accelerate in 2014, up to 2.3 percent across the organization and 2.8 percent in the United States.

Earlier this year, the OECD had projected more robust growth in both the U.S. and in the organization in 2013.

The OECD report comes as international creditors reached an aid agreement for Greece, after weeks of starts and stops.